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Economic Growth in Shanghai Expected at 11.3 Percent
The growth of Shanghai's economy in the first half of 2003 will surpass 11 percent and is expected to reach 11.3 to 11.4 percent, local officials said.

Shanghai Mayor Han Zheng told a conference yesterday that despite the negative impact of SARS, the strong performance of industrial firms and solid foreign investment had kept the economy robust.

"The manufacturing industry has been the major impetus of local economic growth in the first half, with an estimated increase of 18.3 percent in value-added output," he said.

Total industrial output is expected to top 500 billion yuan (US$60.2 billion) from January to June. Profit is set to reach 35 billion yuan, the Shanghai Economic Commission reported.

Led by rapid expansion in the auto manufacturing and information technology industries, value-added output at industrial firms rose 18.4 percent while profits increased 78.6 percent.

The auto sector led the gains in production with 86 percent growth in sales, up from 71.04 billion yuan from a year earlier.

From January to May, the city's fixed-asset investment in the industrial sector jumped 62.3 percent year-on-year to 26.77 billion yuan. The figure is expected to top 34 billion yuan in the first half.

Meanwhile, strong growth in exports helped the economy maintain sound growth in the first half, Vice Mayor Zhou Yupeng said at another meeting.

Exports are expected to expand nearly 50 percent to top US$20 billion.

Imports and exports through Shanghai Port are expected to exceed US$80 billion in the first half, accounting for a quarter of China's total trade volume.

Elsewhere, container throughput is expected to top 5 million twenty-foot equivalent units.

"Shanghai's export-processing and free-trade zones have largely drummed up Shanghai's exports," Vice Mayor Zhou said. "The city government will offer more flexible policies and improve zone management to make them a magnet for foreign investment with sound services from the government."

At present, Shanghai has five export-processing zones in suburban areas. One free-trade zone is located in Waigaoqiao, Pudong.

The Qingpu, Caohejing, Minhang zones and a new zone in Songjiang District were approved by the State Council last month. Construction will be finished in October.

To simplify the examination and approval process, zone administrators were granted the right to approve investment projects with a value below US$30 million.

A week ago, companies in the Waigaoqiao Free Trade Zone were granted foreign trade rights. Before that, they could only import goods used for production and export goods manufactured within the zones.

Songjiang Export Processing Zone was set up in 2000 and put into operation in 2001.

It is home to Taiwan-based Tech-Front (Shanghai) Computer Co Ltd. With exports of US$883 million last year, it ranked No 1 among Shanghai exporters.

In the first five months of this year, exports from companies in the zone reached US$1.42 billion. Last year, it was US$996 million.

Waigaoqiao Free Trade Zone now has projects with funds totaling US$7.93 billion.

(Shanghai Daily June 28, 2003)

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